Respuesta :
Answer:
Increase; higher; more; lower; lower
Explanation:
Expansionary policy is required to combat unemployment in the economy. If the government increases the money supply, the interest rate falls. This causes an increase in investment as lending becomes cheaper. Increase in investment causes an increase in the aggregate demand. Increased demand further causes the price level to rise.
Increase in prices will motivate producers to produce more. In order to increase output producers will hire more workers. Consequently, the rate of unemployment will fall. We see that at higher inflation unemployment is lower and vice versa. This means that there is a trade-off between inflation and unemployment.
The government decides to increase the amount of money in circulation in the economy is :
- Increase
- Higher
- More
- Lower
- Lower
"Expansionary policy"
1) (decrease, increase)the economy's demand for goods and services, leading to .
Answer :The economy's demand for goods and services increases leading to the the amount of money in circulation in the economy .
2.(higher, lower) product prices. In the short run, the change in prices induces firms to produce
Answer :The Higher product prices. In the short run, the change in prices induces firms to produce
3. (fewer, more) goods and services. This, in turn, leads to a.
Answer : The amount of money in circulation in the economy is that more goods and services.
4.(higher, lower) level of unemployment. In other words, the economy faces a trade-off between inflation and unemployment: Higher inflation leads to
Answer : level of unemployment. In other words, the economy faces a trade-off between inflation and unemployment: Higher inflation leads to lower unemployment
5.(higher, lower) unemployment.
Answer :The amount of money in circulation in the economy leads to lower unemployment.
Expansionary policy is required to combat unemployment in the economy.
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